Crypto billionaires threaten exit over California wealth tax

Crypto billionaires in California have warned they may leave the state following a proposal for a new wealth tax.

The proposal, filed by the Service Employees International Union-United Healthcare Workers West, calls for a 5% tax on residents worth more than $1 billion.

The union said the measure could raise up to $100 billion from around 200 individuals to offset healthcare funding gaps.

The proposal would also impose a one-time $1 billion levy on residents with net worth above $20 billion.

The tax targets unrealised gains and would require 850,000 signatures to reach the 2026 ballot.

Kraken co-founder Jesse Powell criticised the plan, calling it punitive for wealth creators.

This tax will be the final straw, billionaires will take with them spending, philanthropy and jobs.

Jesse Powell said.

Bitwise chief executive Hunter Horsley said wealthy individuals are quietly considering relocation within the next year.

Many who made this state great are discussing leaving or have already decided to go.

Hunter Horsley said.

Venture capitalist Chamath Palihapitiya claimed individuals controlling $500 billion in wealth had already left California.

David Sacks criticised the proposal, linking it to government waste.

Why does California need a wealth tax, to fund massive fraud.

David Sacks said.

Historical studies show wealth taxes rarely trigger large-scale migration among the ultra-wealthy.

The proposal has not yet reached the ballot and still requires voter and gubernatorial approval.